(Bloomberg) -- Origin Energy Ltd has agreed to sell a 10% stake in its Australia Pacific LNG joint venture with ConocoPhillips and Sinopec to energy investor EIG Partners for A$2.12 billion ($1.58 billion).
Origin will keep a 27.5% stake in the business, which is Australia’s largest producer of coal seam gas, according to an announcement on Monday. The agreement leaves ConocoPhillips the largest owner with 37.5% and Sinopec with 25%. Origin will keep its existing seats on the board.
“Divesting a 10% interest allows Origin to crystalise some of the significant value we have created in Australia Pacific LNG, while retaining upside to further value creation through a continuing substantial shareholding,” Origin Chief Executive Frank Calabria was quoted as saying in the announcement.
Origin will use the cash from the sale to pay down debt along with more investment in new growth opportunities, the company said.
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